The Power Problem of Bitcoin Is Solved By This Cryptocurrency Miner

As a surge in electricity consumption is witnessed because of Bitcoin, a green-energy startup promises a solution to this problem without raising pollution. This issue if not resolved can stop the spectacular rise of cryptocurrencies.

  •         Bitcoin and Ethereum are minted together using hydropower by Austrian Startup
  •         The electricity used since October for Bitcoin mining rose to 43%

As a surge in electricity consumption is witnessed because of Bitcoin, a green-energy startup promises a solution to this problem without raising pollution. This issue if not resolved can stop the spectacular rise of cryptocurrencies.

GmbH confirmed on its website that the HydroMiner from Austria has raised $2.8 million on Wednesday from its first initial offering. With this cash, the high-powered computers will be installed at hydropower plants where the new cryptocurrencies can be mined at a lower cost and with low impacts on the environment.

Nadine Damblon, the CEO and co-founder of Vienna’s HydroMiner said that there are many people who worry about the high consumption of energy by cryptocurrencies. She further added that it is a big factor. According to Digiconomist website, the electricity required by the worldwide network of computers which run the Bitcoin’s blockchain technology has increased by more than 2/5th to around 28 terawatt-hours per year since the start of October. This is very much power, in fact, more than the power consumed by 186 million people of Nigeria every year. The majority of electricity to feed Bitcoin projects come from generators which run on fossil fuels.

A Citigroup Inc. analyst Christopher Chapman believes that as Bitcoin is approaching $8,000, the amount required to gain marginal profits through mining may increase to shocking $1.5 million from $300,000 by 2022. His estimates are based upon the mining’s present growth rates and the consumption of electricity by computers to do the work. With such pace, the consumption of power by growing Bitcoin may finally match with that of Japan.

A new startup run by six persons is already operating cryptocurrency servers at 2 abandoned hydropower mills in Austria. Its outfitting integrated shipping containers have software and servers which can be put in power stations. To keep the equipment cool, air conditioners are not used but the cold currents of Alpine are circulated through pipes.

Damblon thinks that only renewable energy is used to mine. Damblon is from a software engineers’ family and has worked at Burgtheater in Vienna. After that in 2016, with Nicole, her sister, she started HydroMiner. She further says that more blockchains can be run if power problem is treated this way. The business of HydroMiner is planned to get most from Austria’s abundant hydropower reserves. There are over 2,000 minor stations in the country which are worthless because of lack of state’s support and low wholesale prices of power. The mill owners are paid by the company around 4.5 cents per KWH, much below than the 19.3 cent break-even point required to earn a profit from Bitcoin.

According to Dablon, renewables are not only considered because they are eco-friendly but also because of the profits they make.

This new revenue stream which can be created by hydropower resources of the country is noted by Austria’s utilities and HydroMiner is approached by them. Dablon didn’t provide details but revealed that they are ready for blockchain and innovation.